Disaster Tax Relief Act of 2020 2020-09-16 Introduced in Senate Disaster Tax Relief Act of 2020

This bill sets forth tax relief provisions for individual and business taxpayers residing in a disaster zone during the period beginning on July 1, 2020, and ending 60 days after the enactment of this bill.

Specifically, the bill

  • allows penalty-free disaster-relief withdrawals from tax-exempt retirement plans up to $100,000,
  • permits recontributions of such withdrawals for home purchases cancelled due to disasters,
  • increases to $100,000 the limit on loans for disaster assistance from retirement plans,
  • allows employers affected by a disaster a 40% tax credit for the purpose of retaining employees,
  • increases the tax deduction for corporate disaster relief contributions,
  • enhances the tax deduction for disaster-related personal casualty losses,
  • permits the calculation of the earned income tax credit based upon income earned prior to 2020, and
  • reimburses U.S. possessions for losses sustained due to the application of the provisions of this bill.
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